The Market Week Ahead: July 15 – July 19

 

July 15, 2019 – This week marks the start of second-quarter earnings season. Big banks lead off the week, but there’s a some big tech and a few names from other industries reporting this week as well. 

Earnings reports are obviously pretty company specific, so while it may seem like you should be able to guess one company’s results based on a report from a similar company, this isn’t a trading strategy typically works very well. First, companies are different, all sorts of things that may seems like subtle differences can cause a big swing in results from one company to another. Second, if one company reports a blow-out quarter, other companies in that sector or industry will often rise in sympathy, meaning post-earnings moves from reports that are delivered later are often smaller, because some of the move has already happened.

We try to keep an eye on the market’s reactions to earnings reports. Some earnings seasons, it seems like the market will take any hint of good news as a buying signal, while at other times, it seems like even the tiniest shadow of bad news will send a stock tumbling. The last couple of earnings seasons have been, by and large, pretty reasonable in terms of how the market reacted, which is a trend we’d prefer to see continue. 

Citigroup (C), the biggest company to report so far, topped expectations on both lines and then traded on either side of break even today. A trend can’t be determined from a single data point, so we’ll have to keep an eye on the action for the rest of the week to try to get an idea how how things will shake out.

Economic Events this Week

Retail sales on Tuesday and some home-construction data on Wednesday are the highlights in this section, but the real story this week is going to be earnings.

  • Tuesday
    • 8:30 a.m. – Retail Sales
    • 10:00 a.m. – NAHB Housing Market Index
  • Wednesday
    • 8:30 a.m. – Housing Starts
    • 8:30 a.m. – Building Permits
    • 10:30 a.m. – EIA Crude Oil Inventories
  • Friday
    • 10:00 a.m. – Univ. of Michigan Consumer Sentiment – Prelim

Earnings Reports this Week

Earnings season kicks off this week. In addition to the results, keep an eye out for theme to the market’s reaction.  

Tuesday:

  • Before the bell: JNJ, JPM, WFC, GS, CP
  • After the bell: CSX CTAS, UAL, IBKR, SGEN

Wednesday:

  • Before the bell: BAC, ABT, ASML, USB, PNC
  • After the bell: NFLX, IBM, CCI, KMI, EBAY

Thursday:

  • Before the bell: UNH, SAP, HON, PM, MS
  • After the bell: MSFT, ISRG, COF, CRWD, CHWY

Friday:

  • Before the bell: HDB, AXP, BLK, SLB, SYF

Sector Analysis 

Strong Sectors past Month

These sectors are up 5% or more in the last 20 trading days:

  • Junior Gold Miners
  • Gold Miners
  • Semiconductors
  • Oil Services
  • Cyber Security
  • Technology
  • Nasdaq 100
  • Internet
  • Consumer Discretionary

Weak sectors past month

No sectors are down 5% or more in the last 20 trading days:

    Strong sectors past five trading days

    These sectors are up more than 3% in the last five days.

    • Semiconductors
    • Junior Gold Miners
    • Gold Miners

    Weak sectors past five trading days

    No sectors are down 3% or more in the last five trading days.

    • Robotics and AI

    Bobby Raines

    Bobby Raines

    Bobby Raines is the Managing Editor of the Market Intelligence Center. He has degrees in Mass Communications and History from Emory & Henry College. Bobby worked at a mid-sized daily newspaper before making a switch to covering the financial industry full time in the years leading up to the financial crisis. He has been a member of the Fresh Brewed Media team since 2011 and has served as a writer and analyst. You can write to him at braines@marketintelligencecenter.com or follow him on Twitter: @BRatMICenter.

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